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   DealBook: Who's making the most money
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   It's been a blowout year for C.E.O. pay.
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             June 11, 2021
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                  Alex Karp of Palantir made the most of any public company C.E.O. last year, with a package worth $1.1 billion.
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                  Christophe Petit Tesson/EPA, via Shutterstock
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             Paying (a lot) for performance
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             Six of the 10 largest executive pay packages of all time were awarded last year. This and other findings come from a new survey of the 200 highest paid C.E.O.s at public companies conducted for The Times by Equilar, a consulting firm. “Even in a gilded age for executive pay, 2020 was a blowout year,”
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              writes The Times’s Peter Eavis
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             .
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              The spike is due in large part to linking C.E.O.s’ pay to stock prices.
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             This “pay-for-performance” structure is intended to align managers’ incentives with those of the company’s owners, the shareholders. But it also raises questions about how much credit executives deserve for rising stock prices, and whether the performance conditions attached to stock awards are suitably tough. C.E.O. pay jumped 14.1 percent last year, while the median worker got a 1.9 percent raise.
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               C.E.O.s in the survey received 274 times the pay of the median employee at their companies, up from 245 times in the previous year. Around two-thirds of companies with the largest pay packages had wider gaps between executive and employee pay after the pandemic.
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             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              “Say on pay” votes give shareholders a way to weigh in on compensation.
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             Only
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              around 2 percent
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             of these nonbinding votes have historically gone against management, with recent high-profile rebukes coming at
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              Starbucks
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             and
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              G.E.
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             So far this year, votes against pay packages are
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              on the rise
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             , although these still tend to come in well below 50 percent disapproval.
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               “In tough times, it often makes sense to reward excellent leadership, even when optimum company performance may not be achievable,” said Equilar’s Dan Marcec about the initial batch of say-on-pay votes this year. “In a year mired in economic challenges and future uncertainty, this disconnect may be on further display.”
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              Eight C.E.O.s received pay packages last year worth more than $100 million.
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             In 2019, only one chief executive’s pay package crossed that threshold. The top three earners all oversaw companies that went public last year. They are:
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              <span style="font-size:17px;line-height:25px">
               <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
                Alex Karp
               </span>
               of Palantir, with $1.1 billion in compensation.
              </span>
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              <span style="font-size:17px;line-height:25px">
               <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
                Tony Xu
               </span>
               of DoorDash, with $414 million.
              </span>
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              <span style="font-size:17px;line-height:25px">
               <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
                Eric Wu
               </span>
               of Opendoor, with $370 million.
              </span>
             </li>
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              For more charts and details about executive pay packages,
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              <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
               read the full article
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              .
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            <h3 class="css-132hdgt e8bxl341" style="color:#000;font:700 16px/24px arial,sans-serif;margin:8px 0 25px 0;-webkit-letter-spacing:.2px;-moz-letter-spacing:.2px;-ms-letter-spacing:.2px;letter-spacing:.2px">
             HERE’S WHAT’S HAPPENING
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              A bipartisan group of senators announced a compromise infrastructure deal
             </span>
             . Five Democrats and five Republicans put together a package
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              worth $1.2 trillion over eight years
             </a>
             . It would address a narrower range of physical infrastructure than the plan proposed by the White House, and avoid raising taxes to pay for it (though details on this point are scarce).
            </p>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              The F.D.A. extends the shelf life of J.&amp;J.’s vaccine
             </span>
             . The regulator gave the company
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              six more weeks
             </a>
             to use up its supply, before millions of doses were set to possibly go to waste. State officials said the federal decision to pause its use in April on concerns about rare blood clots led to sagging demand for the single-dose vaccine.
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             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              Investors shrug off high inflation numbers.
             </span>
             Consumer prices rose at their
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              fastest pace since 2008
             </a>
             , more than economists expected. But one-third of the increase in the latest data, for May, was due to a surge in prices for used cars, a sign that the spike in inflation may be a result of supply chain bottlenecks and other temporary factors. The S&amp;P 500 closed at
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              a record high
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             and bonds showed
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              few signs of distress
             </a>
             . Stock futures are up again today.
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              The F.B.I. urges companies not to pay ransoms to hackers.
             </span>
             Christopher Wray, the F.B.I.’s director, said at a congressional hearing that companies infected with ransomware
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              should quickly contact law enforcement
             </a>
             to find other ways to respond. Victims paid
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              nearly $350 million in ransoms
             </a>
             last year, emboldening hackers to take on more high-profile targets this year, like the meat producer JBS and the Colonial Pipeline operator.
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             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              Regulators weigh the risk of banks holding Bitcoin.
             </span>
             In both good and bad news for supporters of cryptocurrency, the Basel Committee on Banking Supervision
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              proposed a risk-management framework
             </a>
             for crypto assets on bank balance sheets. That establishes digital tokens as a recognized asset class, bringing them more into the mainstream, but the suggested risk weight, 1,250 percent, would make capital requirements for holding crypto onerous.
            </p>
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            <h2 class="css-12n1aic el2acgh0" style="color:#000;font:700 25px/32px arial,sans-serif;margin:0 0 10px">
             Didi Chuxing unveils its I.P.O.
            </h2>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             The Chinese ride-hailing giant Didi Chuxing
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              published its I.P.O. documents
             </a>
             yesterday, giving the first peek inside a company valued
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              at $56 billion
             </a>
             a few years ago. The planned New York listing could be the world’s biggest I.P.O. this year, with
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              sources telling Reuters
             </a>
             that the company may raise $10 billion at a valuation of $100 billion. The offering comes as many city dwellers emerge from pandemic lockdowns and return to their ride-hailing ways.
            </p>
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              Sales and profit fell last year.
             </span>
             Didi’s revenue fell 8 percent last year, to $21.6 billion, as passenger numbers slid during the pandemic. It lost $1.6 billion for the year, and like most ride-hailing companies, Didi has historically been unprofitable even during better economic times. It reported a profit of $30 million in the first quarter of this year, although some of that came from gains on spinoffs and divestitures.
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             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              It wants to grow globally.
             </span>
             Didi operates in 15 countries, including Brazil and Mexico, and has built a dominant position in China, where it
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              bought Uber’s operations
             </a>
             after a few years of competing with it. “What we have learned and built is relevant across the globe — in Latin America, Russia, South Africa or anywhere where affordable, safe and convenient mobility is valuable,” Didi wrote in its prospectus.
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            <h2 class="css-12n1aic el2acgh0" style="color:#000;font:700 25px/32px arial,sans-serif;margin:0 0 10px">
             “I don’t feel like a guinea pig. I feel like a pioneer.”
            </h2>
           </td>
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             <span style="font-style:italic;font-size:inherit">
              — Michelle Lewis of Orange County, Calif., on her honeymoon aboard
             </span>
             <span style="font-style:italic;font-size:inherit">
              <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
               the first cruise ship to set sail from a North American port
              </a>
             </span>
             <span style="font-style:italic;font-size:inherit">
              since the pandemic began.
             </span>
            </p>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             <span style="font-style:italic;font-size:inherit">
              Though it was billed as the continent’s first fully vaccinated cruise, two passengers on the Royal Caribbean ship nonetheless
             </span>
             <span style="font-style:italic;font-size:inherit">
              <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
               tested positive
              </a>
             </span>
             <span style="font-style:italic;font-size:inherit">
              for the coronavirus yesterday. They are asymptomatic and in isolation, with the seven-day cruise set to return to St. Maarten tomorrow. Cruise lines are preparing to restart operations from U.S. ports this summer.
             </span>
            </p>
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               <td style="width:100%;padding:0;line-height:1" width="100%">
                <img class="css-1rg59gv e1e3sevz0" src="https://inboxflows.com/_/image/https%253A%252F%252Fstatic01.nyt.com%252Fimages%252F2021%252F01%252F29%252Fbusiness%252Fdealbook-icon-barchart%252Fdealbook-icon-barchart-articleLarge-v4.gif/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZzdGF0aWMwMS5ueSJ9:1lrf8Q:-hD3AYGfwMPcOhC1vyCYgf5XVz8I66rXhipfA7ukqDc" style="display:block;width:100%;height:auto;padding-bottom:25px;padding-top:10px"/>
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            <h2 class="css-12n1aic el2acgh0" style="color:#000;font:700 25px/32px arial,sans-serif;margin:0 0 10px">
             These precedented times
            </h2>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             Dealing with the fallout from a deadly, destabilizing pandemic left many executives struggling for words. When they tried to describe the challenge to investors, especially during the early days of the outbreak, they often turned to the same descriptor: “
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              unprecedented
             </a>
             .”
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             As economies reopen and conditions become more, well, precedented, the chatter among executives, analysts and investors is changing as well. Mentions of “unprecedented” events are less prevalent than they were a year ago and are often references to something in the past. “We’re now comparing to the unprecedented growth we saw a year ago,” said Jim Jaye of Sherwin-Williams at an investor event this week.
            </p>
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